Weekly Update: June 6, 2013

| June 6, 2013

Weekly Update:  June 6, 2013


What To Watch

Looks like the bears have recently taken over the market.  The S&P 500 is down 2.5% for the week and is now down small for the month.  Mostly, it seems like investors are concerned over when the Fed will start tapering back on its stimulus.  Concerns over the domestic and international economy are also lingering.

It’s funny if you think about it…

If the economy isn’t doing well, the Fed won’t curtail its stimulus program.  If the economy is doing better, then the economy is DOING BETTER.  Doesn’t seem like a reason to sell stocks to me.  Anyhow, the market may have been a bit overbought, so this selloff is something of a mean reversion.

I’m not really concerned about the economy or the market right now.  I believe the bulls will be back in the driver seat soon enough.

In other news, I wanted to share this comment from James F. with you:

Just want to say thank you to the team there at OptionsTradingWire.  I am a new subscriber, ARUN was my first options trade that I completed with you.  I couldn’t be happier, in the two weeks that I held the options I saw over a $1700.00 profit.  Keep up the great work.

Comments like this are the reason I do what I do.  My favorite part of running this service is when I hear how someone made money from my trades.  After all, that’s what this is all about.

Feel free to send your own comments (positive or negative) my direction.  Okay, on to the portfolio.


Portfolio Recap

Position #1:  LinkedIn (LNKD) June $150 Puts

Price Paid: $1.18

Current Price: $0.65

Time Until Expiration: 15 days

LNKD has been all over the place this week.  At one point, with the stock touching $160, our options were decent winners.  However, I chose to hold on to them because I was a bit worried about a market breakdown.

Now, the stock has bounced off the $160 support level, but it’s not out of the woods yet.  We’re going to wait and see how the market looks tomorrow and possibly Monday before we decide what to do with these puts.


Position #2:  Fusion-io (FIO) June $14 Calls

Price Paid: $1.15

Current Price: $0.70

Time Until Expiration: 15 days

Market pressure has been keeping a lid on FIO and the stock has been pretty stagnant of late.  Unless the shares take a decent turn higher tomorrow, there’s a good chance we’ll unload them.


Position #3:  Cliffs Natural Resources (CLF) July $20 Calls

Price Paid: $1.11

Current Price: $0.86

Time Until Expiration: 43 days

CLF has jumped around quite a bit since we made this trade last week.  It was down big, and then up big, and then back down.  Our calls are holding most of their value and there’s still nearly a month and a half until expiration, so we’re going to continue to sit on this trade.  I firmly believe CLF will be over $20 at some point by July expiration.


Category: OTW Weekly Updates